Shiba Inu (SHIB) Faces Dual Death Cross Signals: Technical Analysis and Bear Market Implications

The Death Cross: A Bearish Milestone for Shiba Inu

Shiba Inu (SHIB) entered a critical phase in September 2025 as its price chart formed a death cross, a technical signal where the 50-day exponential moving average (EMA) crossed below the 200-day EMA on the daily timeframe. This marked the second death cross for SHIB in 2025, following a similar event in February that preceded a prolonged decline to $0.00001 by June. The recent bearish crossover occurred amid a broader consolidation phase, with SHIB trading near $0.00001227 and facing key support at $0.00001200 and resistance at $0.00001297.

Compounding the bearish sentiment was a "mini death cross" in early September, where the 50-day EMA dipped below the 100-day EMA, signaling short-term waning momentum. This dual bearish signal—combining traditional and intermediate-term moving average crossovers—has raised concerns about a potential breakdown below critical support levels, which could accelerate further declines.

Technical Indicators and Market Sentiment

Technical indicators provided mixed signals at the time of the death cross. The Relative Strength Index (RSI) hovered near 47.83, indicating a neutral market, while the MACD histogram showed residual bullish momentum, creating ambiguity for traders. Trading volumes, however, told a different story: daily volume remained subdued compared to July's peaks, and exchange inflows declined by 40%, reflecting thinning liquidity and speculative interest.

The price action also revealed a tightening wedge pattern, with SHIB consolidating between $0.00001181 and $0.0000127. A breakout above $0.00001297 (the 100-day EMA) could invalidate the bearish signal, while a breakdown below $0.00001200 would likely trigger a test of the $0.00001 psychological level. Analysts caution that a sustained move below $0.00001 could reignite the bearish trend seen in early 2025.

Bear Market Implications and Broader Market Dynamics

The death cross for SHIB emerged against a backdrop of broader crypto market weakness, particularly in September—a historically volatile month for digital assets. While SHIB briefly rebounded with an August golden cross (50-day EMA crossing above the 200-day EMA), the optimism was short-lived as macroeconomic uncertainty and seasonal bearishness took hold.

Institutional interest in Bitcoin derivatives has also indirectly influenced SHIB's trajectory. As Bitcoin's price action stabilizes, cross-chain activity and meme coin sentiment remain fragile. Some models project a 160% gain potential for SHIB by September 22, 2024, but these forecasts ignore the token's recent technical deterioration and the broader market's risk-off sentiment.

Conclusion: Navigating Uncertainty in a Bearish Climate

Shiba Inu's recent death cross underscores the challenges facing meme coins in a risk-averse market. While the token's price remains above critical support levels for now, the technical indicators and volume trends suggest a lack of conviction among traders. Investors should monitor daily closes near the 200-day EMA and key resistance levels for directional clues.

For SHIB to reestablish bullish momentum, it would need to break above $0.00001388 (the 200-day EMA) and sustain volume above $150 million. Until then, the bearish narrative—fueled by dual death crosses and seasonal weakness—remains intact. Traders are advised to exercise caution, with stop-loss orders placed below $0.00001200 to mitigate downside risk.

Source:
[1] Bearish Concerns Emerge as Shiba Inu Encounters Another Death Cross [https://thecryptobasic.com/2025/09/08/bearish-concerns-emerge-as-shiba-inu-encounters-another-death-cross/]
[2] Shiba Inu Major Death Cross Appears Again: Details [https://www.tradingview.com/news/u_today:833af413a094b:0-shiba-inu-major-death-cross-appears-again-details/]
[3] SHIB Price Forecast Shows 160% Gain Potential Despite Mixed September History [https://yellow.com/news/shib-price-forecast-shows-160-gain-potential-despite-mixed-september-history]
[4] Shiba Inu: Mini Death Cross? Unexpected Price Turnaround [https://u.today/shiba-inu-mini-death-cross-unexpected-price-turnaround]